Advanced economies remain the largest insurance markets, with such economies accounting for $3.8 trillion of global premium of a total $4.7 trillion in 2016, the report said. The U.S. is the largest market, Japan second, and “One cannot ignore the growing significance of China, however, now the third largest insurance market in the world,” the report said.

Profitability declined in 2016, the report said, in a sample of eight key markets — U.S., Canada, the U.K., Germany, France, Italy, Japan and Australia — as the sector’s return on investment fell to 6.2% from 8.1% in 2015, due largely to “weaker underwriting results and lower investment earnings due to declining interest rates.” The overall combined ratio for the eight markets deteriorated from 97.8% in 2015 to 99.9% in 2016, the report said.

Non-life sector growth will remain “moderate,” the report said in its outlook, “supported mainly by improved activity in the advanced economies.”

North American premium growth is forecast to improve in 2017, “supported by a strengthening economy and higher interest rates in the US.”

Emerging economies, meanwhile, are forecast to see “robust” property/casualty premium growth, with China again the engine, “supported by the continuing efforts of the Chinese government to increase insurance penetration,” the report said.